Microsoft buys Musiwave

Microsoft is to purchase mobile music service provider Musiwave from parent company Openwave for £23m. As well as taking on the company's assets and clients, it will also assume £2m of net debt.

Microsoft is to purchase mobile music service provider Musiwave from parent company Openwave for £23m. As well as taking on the company's assets and clients, it will also assume £2m of net debt.

Musiwave builds and hosts white-label mobile music services for mobile operators such as T-Mobile and Orange.

This is the second time that Musiwave has been snapped up in two years, the original Openwave acquisition coming in January 2006.

However, Microsoft is getting it for considerably less than the £58m that Openwave paid.

"This is perhaps an indicator of the fact that growth in mobile music has not been as strong as the operators, service providers and record labels might have hoped. At the same time, the ringtone market, which is a key area for Musiwave, has been in decline. This will no doubt have had a knock-on effect on the company's fortunes, but being under Microsoft's umbrella should relieve any financial worries," said Jonathan Arber, an analyst at Ovum.




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